Avistar Communications (AVSR) Sees Strong Growth in 2009
Avistar Communications Corporation (Nasdaq: AVSR) announced initial financial guidance for the fiscal year ending December 31, 2009. The company currently expects revenue to increase by more than 75% as compared to the full year 2008. Total costs and expenses, excluding income from settlement and licensing activities and stock compensation expense, are anticipated to decline by an additional 15%, as the company continues to migrate from hardware component sales to a software-only product offering, and a full year of cost savings from initiatives implemented during 2008 are realized.
"Combining the revenue expansion that we project with a targeted margin improvement of approximately 25 points, and reduced operating expenses, provides a basis for adjusted EBITDA guidance, as described below, of $5 to $6 million, as well as net income of approximately $2 to $3 million in 2009. Additionally, cash generated from operations is expected to be approximately $2 million by year-end, although we are not planning to generate positive cash from operations in the first quarter," said Simon Moss, CEO of Avistar.
Moss continued, "...With the execution of existing contractual commitments, we believe we have visibility on greater than one half of our 2009 revenue target. These contractual commitments may result in some lumpy cash flow based on contractual terms, which we have factored into our forecasting. We consider this to be a decent place to be, and we look forward to updating the market on our continuing progress as we perform throughout 2009."
Avistar Communications Corporation (Avistar) is engaged in the design, development, manufacturing, sale and marketing of networked video communications products, and the prosecution, maintenance, support and licensing of the intellectual property and technology.[SM]
"Combining the revenue expansion that we project with a targeted margin improvement of approximately 25 points, and reduced operating expenses, provides a basis for adjusted EBITDA guidance, as described below, of $5 to $6 million, as well as net income of approximately $2 to $3 million in 2009. Additionally, cash generated from operations is expected to be approximately $2 million by year-end, although we are not planning to generate positive cash from operations in the first quarter," said Simon Moss, CEO of Avistar.
Moss continued, "...With the execution of existing contractual commitments, we believe we have visibility on greater than one half of our 2009 revenue target. These contractual commitments may result in some lumpy cash flow based on contractual terms, which we have factored into our forecasting. We consider this to be a decent place to be, and we look forward to updating the market on our continuing progress as we perform throughout 2009."
Avistar Communications Corporation (Avistar) is engaged in the design, development, manufacturing, sale and marketing of networked video communications products, and the prosecution, maintenance, support and licensing of the intellectual property and technology.[SM]
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